What Is SAP SD? (With Features and Important Components)

By Indeed Editorial Team

Published 27 September 2021

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

SAP is an enterprise resource planning (ERP) software that has a large number of completely integrated modules, with SAP SD being one of them. SAP provides organisations with the ability to create a centralised system for all processes and helps the departments of the organisation to record and assess the data, enabling them to create the best working environment for all employees. If you plan to make your career in a SAP sales and distribution position, you may benefit from knowing more about these concepts. In this article, we discuss what is SAP SD, the different features of the SAP module, its key components, the salary a SAP SD expert may earn and the advantages of SAP SD.

What is SAP SD?

SAP SD is a module that you may use to store customer and product-related data. This module is part of the SAP ERP Central Component (ECC) Logistics function and is closely integrated with SAP Material Management (MM) and SAP Production Planning (PP). There are sub-modules of the SAP SD module, such as vendor and customer database, billing, delivery, credit management and invoicing.

While working together with different modules, SAP SD starts the cycle of the order-to-cash business process. Sales and distribution manage all the details which are part of this cycle. In a regular cycle, SD creates the sales quote and customers place an order. Once the order is confirmed, goods are dispatched from the production facility or warehouse to the customer's location. The invoice is also sent along with the order and the accounts team for processes the payment. Each step in this process records transactions that lead to more transactions in other modules.

Read more: What Is SAP and What Are the Advantages of Using It?

Different features of SAP SD module

Here are some critical features of this module:

  • Pricing and taxation: This feature helps to calculate the cost of the goods or services for the client depending upon their requirements and other parameters, like a discount or rebate they want to grant to the customer. Also, it helps to calculate the tax since each region where services are complete may be slightly different.

  • Availability check: The availability check feature helps to check if the product is available in the facility or warehouse. It may also calculate the number of pieces available of a particular product.

  • Billing and invoicing: This feature also helps generate bills and create invoices for the customer.

  • Material determination: This feature provides information on the material of the product.

  • Credit management: The credit management feature helps to manage the credit limits you assign to all customers. This figure gives two ways to maintain credit, which are automatic and simple credit checks.

  • Account determination: This feature helps you to know the type of account based on the given condition.

Read more: What Is an Accountant? Types and Career Advice

Important components of the SD module

The sales and distribution module of SAP is the crucial ERP module created by them. It helps to manage the customer and sales distribution processes and data in a better way. Here are the key components of SAP SD module:

Master data

Master data of the SAP SD module maintains the record of every activity within the existing data. The sales and distribution master data comprise credit management, pricing conditions, material data, customer data and output records. This module also includes all the processes, from the order to cash flow. The master data function stores customer master data, material master data and pricing condition data.

Read more: 10 Valuable Data Analysis Skills

Sales module

The sales module (SAP-SD-SLS) helps to maintain the little details of each sale that has taken place. From details of the product sold, customer details, the price at which the product is sold and also the customer feedback, all business details are recorded by using this module. Functions of this module are:

  • sales orders

  • inquires and quotes

  • scheduling agreements

  • consignment

  • debit and credit memo requests

  • backorders and rush orders

Billing module

The billing (SAP-SD-BIL) module is one of the most critical modules for the SD process. The consumers have a choice to make payments either by using an online payment platform like net banking, debit cards or credit cards or paying during the delivery of the product. This module keeps track of the entire billing data for future reference. Functions of this module are:

  • manual or automatic invoice creation

  • a collection of different billing functions

  • comprehensive pricing information

  • real-time, updated finance details

Shipping module

The SAP-SD-SHP (shipping) module keeps a record of the shipping of the product and its delivery. This module helps to make sure the products are shipped and delivered to the correct address of the customer. Also, it keeps track of all the methods of shipping used to deliver the product. Along with shipment, this module also helps to track the return of the shipment, if applicable. Functions of the shipping module are:

  • picking, packaging and inventory management

  • generating shipment documents

  • scheduling and transportation management

  • transferring of stock

  • delivery scheduling and return scheduling

Transportation module

The transportation (SAP-SD-TBA) module and shipping module work together. Since every product's mode of transport may vary, this module keeps track of all the data related to the transportation of the products. The transportation module is flexible and is something you can likely use easily to compile, consolidate and use data from the sales and distribution process. This module also allows for the collection of logistics information via its LIS.

Sales support module

Starting from the selling of a service or a product to its maintenance, the sales team plays an important role in building relationships with customers. The SAP-SD-CAS (sales support) module helps to maintain the record of the customer. Sales teams may exchange information between themselves to deliver the support the customer may need for the delivery of their product. The sales support module also offers the feature to provide support to the sales staff, who are often part of the customer support or business development processes.

Functions of the sales support module are:

  • contact persons

  • sales prospects

  • sales activities

  • competitors' products

  • direct marketing to consumers

Read more: The Role of a Sales Executive: Responsibilities and Skills

Foreign trade module

The foreign trade (SAP-SD-FTT) module enables you to maintain data of foreign trade. It helps to keep a record of products you have exported and imported for customers. Organisations that use foreign trade in any capacity may benefit from using the foreign trade module.

Salary of a SAP lead

The average base salary of a SAP lead is ₹12,60,873 per year. The salary of a SAP expert may vary as per your experience, skills and location. The average base salary of a SAP consultant salary in Coimbatore, Tamil Nadu, is ₹6,18,934 per year. In comparison, the average base salary of SAP consultants in Delhi is ₹7,91,482 per year. In Bengaluru, Karnataka, a SAP consultant makes an average base salary of ₹8,79,908 per year. Your salary may increase if you advance your skills and how your passion for the industry.

Advantages of using SAP SD

Here are some advantages of using SAP SD:

  • It helps to track transactions of sales.

  • It keeps a record of sales data and also produces a report of team performance.

  • SAP SD captures all pre-sales and post-sales process information.

  • It provides a defined process of SD (sales and distribution).

  • SAP SD enables you to categorise diverse sales and their designated processes.

  • It helps to effectively manage the documents related to sales in the system.

SAP in workplace

Nowadays, many organisations use SAP around the globe. The knowledge about SAP ERP and the various modules and functions it offers may help you be in an advantageous position while applying for jobs. You may also be in a better position to earn a promotion in the workplace if you know how to use SAP. Gaining experience and becoming an expert in this technology may also help you reach a leadership role. Here are a few positions and industries where SAP ERP is used:

  • human resources management

  • project management

  • warehouse management

  • customer relationship management

  • financial management

  • accounting

Salary figures show data as per the Indeed Salaries site at the time of article writing. The salaries may differ as per the hiring organisation, academic background of the candidate, experience and location.

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